Poor European economic data rattle markets

A raft of disappointing economic data from several eurozone nations has added
to fears about the financial health of the EMU.

Germany's imports were down 4.8 in April compared with the previous monthPhoto: Reuters

By Telegraph staff and agencies

12:44PM BST 08 Jun 2012

Exports from Germany, Europe's biggest economy, dropped 1.7pc in April compared with the previous month - a fall that followed three consecutive months of gains.

The country's imports were down 4.8 in April compared with the previous month, also ending three months of increases.

Both missed analyst expectations of -0.7pc and -0.1pc respectively.

However, Germany's central bank is raising its 2012 economic growth forecast for the country to 1pc, citing global growth and a boost to domestic demand from a healthy labor market and favorable financing conditions.

The Bundesbank's prediction compared with its forecast last December of 0.6pc growth in gross domestic product this year.

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Italy's industrial production plunged 1.9pc in April over a month as an economic recession grinds on, official data agency Istat said, after a rise of 0.6pc in March. The fall was much bigger than expected.

Portugal's economy contracted 0.1pc in the first quarter from the last three months of 2011, and by 2.2pc from the same quarter last year, the national statistics agency Ine said Friday.